Chart of Accounts for Law Firms
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SAMPLE Practice Resource Institute Administrative Form Page 1 of 14 [Practice Resource Institute Note: Law firms are required by the IRS to maintain accounting books on a cash basis. Nonetheless, law firm management may wish to do additional internal reporting.] Chart of Accounts for Law Firms Accounts Used for Additional Modified Cash Basis Statements Assets 100.XX --101.00 101.10 101.20 --102.00 102.10 102.20 --109.00 109.10 109.20 Cash Checking accounts Checking accounts #1 Checking accounts #2 Savings accounts Savings accounts #1 Savings accounts #2 Petty cash Petty cash account #1 Petty cash account #2 100.XX --111.00 --112.00 Reserved Reserved Reserved 120.XX --121.00 121.00 121.20 Short-term investments Short-term investments Treasury securities Other marketable securities 130.XX --131.00 --132.00 Costs recoverable from clients Costs recoverable from clients - unbilled Costs recoverable from clients - billed 140.XX --141.00 --142.00 Other Receivables Expense advances Receivables from partners (officers) and employees (other than loans to fund partners' capital - see Partners' Equity) SAMPLE Practice Resource Institute Administrative Form Page 2 of 14 142.10 142.20 --143.00 143.10 143.90 Short-term notes and loans receivable from partners (officers) and employees Other receivables from partners (officers) and employees Miscellaneous receivables and deposits Deposits (refundable) Miscellaneous receivable 150.XX --151.00 --159.00 Other current assets Prepaid Insurance Other current assets 160.XX --161.00 --162.00 --163.00 --164.00 164.10 164.20 164.30 164.90 --165.00 --167.00 --168.00 --169.00 Fixed assets Furniture and Fixtures Leasehold improvements Library books Equipment Reprographic equipment Communications equipment Computer equipment Other equipment Building(s) Other depreciable fixed assets Land Nondepreciable fixed assets XX --171.00 --172.00 --173.00 --174.00 174.10 174.20 174.30 174.90 --175.00 --177.00 Accumulated depreciation and amortization Accumulated depreciation - furniture and fixtures Accumulated amortization - leasehold improvements Accumulated depreciation - library books Accumulated depreciation - equipment Reprographic equipment Communications equipment Computer equipment Other equipment Accumulated depreciation - buildings Accumulated depreciation - other depreciable fixed assets XX --191.00 --192.00 --193.00 --194.00 --199.00 Other long-term assets Cash surrender value of life insurance Miscellaneous securities Other long-term investments IRS tax deposits Other long-term assets SAMPLE Practice Resource Institute Administrative Form Page 3 of 14 Liabilities 200.XX --201.00 --202.00 --203.00 Employee payroll tax liability Federal income tax withheld State income tax withheld Employee FICA tax withheld 210.XX --211.00 211.10 211.90 Short-term loans payable Short-term loans payable Short-term loans from financial institutions Other short-term loans 220.XX --221.00 --222.00 Portion of long-term loans due within one year Long-term loans due within one year Amounts payable to decreased and retired partners within one year 230.XX --231.00 Reserved Reserved 240.XX --241.00 --242.00 242.10 242.20 242.30 242.90 --249.00 Other current liabilities Accrued expenses-billable to clients Payroll deductions Hospitalization plan deductions Life insurance withholdings Employee pension plan contributions withheld Other payroll deductions Other current liabilities 250.XX --251.00 251.10 251.90 Long-term loans payable Long-term loans payable Long-term loans from financial institutions Other long-term loans Partners' (Shareholders') Equity (for a Partnership) 300.XX --301.XX 301.10 301.20 Etc. Partners' capital accounts Partners' capital accounts balances at beginning of year Partner A Partner B SAMPLE Practice Resource Institute Administrative Form Page 4 of 14 --302.XX 302.10 302.20 Etc. --303.XX 303.10 303.20 Etc. 310.XX --311.XX 311.10 311.20 Etc. --312.XX 312.10 312.20 Etc. --313.XX 313.10 313.20 Etc. Current year contributions and other additions to partners' capital Partner A Partner B Current year withdrawals and other deductions from partners' capital Partner A Partner B Partners' income accounts Undistributed income from prior years Partner A Partner B Current year's interest on partners' capital Partner A Partner B Allocation of current year's income Partner A Partner B XX Income payments to or on behalf of partners --321.XX Cash drawings from prior years' income 321.10 Partner A 321.20 Partner B Etc. --322.XX Cash drawings from current year's income 322.10 Partner A 322.20 Partner B Etc. --323.XX Payments to partner retirement plans 323.10 Partner A 323.20 Partner B Etc. --324.XX Other payments on behalf of partners from current year's income 324.10 Partner A 324.20 Partner B Etc. SAMPLE Practice Resource Institute Administrative Form Page 5 of 14 380.XX 380.10 380.20 Etc. Loans to partners to fund capital accounts Partner A Partner B 390.XX 390.10 390.20 Etc. Amounts payable to former/inactive partners Partner A Partner B Partners' (Shareholders') Equity (for a Professional Corporation) 300.XX --301.00 --302.00 Capital stock Common stock Preferred stock XX Paid-in capital XX Treasury stock 330.XX Retained earnings Revenue 400.XX --401.00 401.10 401.20 401.30 401.40 401.50 401.60 Etc. --402.00 --403.00 --409.00 Fees from professional services Fees from legal services Corporate and business Taxation Real estate Labor Litigation-general Litigation-product liability XX --411.00 --412.00 --413.00 --414.00 414.10 Revenue from other personal services Document creation charges (word processing and secretarial) Librarian and other internal research charges Internal messenger charges Overtime recovered from clients Secretarial overtime recovered from clients Commissions and other fees Directors' Fees Other professional service income SAMPLE Practice Resource Institute Administrative Form Page 6 of 14 414.20 414.30 414.90 Word processing overtime recovered from clients Messenger overtime recovered from clients Other overtime recovered from client Employee Costs 500.XX Compensation-officers --*501.00 Officer Compensation *501.10 Salaries *501.20 Bonuses 510.XX --511.00 511.10 511.20 --512.00 512.10 512.20 --513.00 513.10 513.20 Compensation-associates, of counsel, and contract lawyers Associate compensation Salaries Bonuses Of counsel compensation Full-time of counsel compensation Part-time of counsel compensation Contract associate compensation Salaries Bonuses 520.XX --521.00 --522.00 522.10 522.20 522.30 --529.00 529.10 529.20 529.30 Compensation-nonlawyer legal staff Summer associate compensation Legal assistant (paralegal) compensation Salaries Bonuses Overtime Other nonlawyer staff compensation Salaries Bonuses Overtime 530.XX --531.00 531.10 531.20 531.30 --532.00 532.10 532.20 532.20 Compensation-secretaries and word processors Secretary compensation Salaries Bonuses Overtime Word processor compensation Salaries Bonuses Overtime SAMPLE Practice Resource Institute Administrative Form Page 7 of 14 540.XX – 559.XX -- 541.10 541.20 541.30 --542.00 542.10 542.20 542.30 --543.00 543.10 543.20 543.30 --544.00 544.10 544.20 544.30 --545.00 545.10 545.20 545.30 --546.00 546.10 546.20 546.30 --547.00 547.10 547.20 547.30 --548.00 548.10 548.20 548.30 --549.00 549.10 542.20 549.30 --550.00 550.10 550.20 550.30 Compensation-other Administrative Support staff Administrative compensation Salaries Bonuses Overtime Professional recruiting compensation Salaries Bonuses Overtime Personal compensation Salaries Bonuses Overtime Accounting compensation Salaries Bonuses Overtime Data processing compensation Salaries Bonuses Overtime Library compensation Salaries Bonuses Overtime Reception and switchboard compensation Salaries Bonuses Overtime Reproduction compensation Salaries Bonuses Overtime Mail and messenger compensation Salaries Bonuses Overtime File room compensation Salaries Bonuses Overtime SAMPLE Practice Resource Institute Administrative Form Page 8 of 14 --559.00 559.10 559.20 559.30 Other office services compensation Salaries Bonuses Overtime 560.XX --561.00 *561.10 561.20 561.30 561.40 561.90 --562.00 *562.10 562.20 562.30 562.40 562.90 --563.00 *563.10 563.20 563.30 563.40 563.90 --568.00 *568.10 568.20 568.30 568.40 568.90 Mandatory employee benefits FICA taxes Officers Associates and contract lawyers Other nonlawyer staff Secretaries and word processors Other administrative support staff Federal unemployment insurance Officers Associates and contract lawyers Other nonlawyer legal staff Secretaries and word processors Other administrative support staff State unemployment insurance Officers Associates and contract lawyers Other nonlawyer legal staff Secretaries and word processors Other administrative support staff Worker’s compensation insurance Officers Associates and contract lawyers Other nonlawyer legal staff Secretaries and word processors Other administrative support staff XX Discretionary employee benefits --*571.00 Officer discretionary benefits *571.10 Group life insurance *571.20 Group medical/dental insurance *571.30 Group disability insurance *571.40 Pension and profit-sharing plan contributions --572.00 Associate discretionary benefits 572.10 Group life insurance 572.20 Group medical/dental insurance 572.30 Group disability insurance 572.40 Pension and profit-sharing plan contribution SAMPLE Practice Resource Institute Administrative Form Page 9 of 14 --573.00 573.10 573.20 573.30 573.40 --574.00 574.10 574.20 574.30 574.40 Other nonlawyer legal staff discretionary benefits Group life insurance Group medical/dental insurance Group disability insurance Pension and profit-sharing plan contributions Office staff discretionary benefits Group life insurance Group medical/dental insurance Group disability insurance Pension and profit-sharing plan contributions 580.XX --581.00 --582.00 --583.00 --584.00 Temporary service Temporary lawyers Temporary nonlawyer legal staff Temporary secretaries and word processing staff Other temporary administrative support staff 590.XX --591.00 --599.00 Other employee expenses Employee parking allowances Other employee costs Occupancy Expenses 600.XX --601.00 --602.00 --603.00 --604.00 --605.00 --606.00 --607.00 --609.00 Space costs Rent expenses Depreciation of owned premises Interest on debt associated with owned premises Insurance, real estate taxes, and other costs associated with owned premises Amortization of leasehold improvements Utilities Maintenance and repairs to premises Occupancy charged to clients for overtime 610.XX --611.00 --612.00 --613.00 --614.00 --619.00 Other occupancy expenses Office housekeeping expenses Offsite storage Office relocation Office security Other occupancy expenses 620.XX Sublease income SAMPLE Practice Resource Institute Administrative Form Page 10 of 14 Office Operating Expenses 700.XX --701.00 701.10 701.20 701.30 701.40 Stationary, printing, and supplies Stationary, printing, and supplies Stationary Printing Paper and supplies Computer supplies and software 710.XX --711.00 --712.00 --713.00 --714.00 --719.00 Furniture and equipment rental Office furniture and fixtures Reprographic equipment Computer equipment Communications equipment Other equipment 720.XX --721.00 721.10 721.20 721.30 721.40 721.90 Depreciation of furniture and equipment Depreciation of furniture and equipment Office furniture and fixtures Reprographic equipment Computer equipment Communications equipment Other equipment 730.XX --731.00 731.10 731.20 731.30 731.40 731.90 Interest on debt associated with purchased furniture and equipment Interest on debt associated with purchased furniture and equipment Office furniture and fixtures Reprographic equipment Computer equipment Communications equipment Other equipment 740.XX --741.00 741.10 741.20 741.30 741.40 741.90 Maintenance and repair of furniture and equipment Maintenance and repair of furniture and equipment Office furniture and fixtures Reprographic equipment Computer equipment Communications equipment Other equipment SAMPLE Practice Resource Institute Administrative Form Page 11 of 14 750.XX --751.00 751.10 751.20 751.30 751.40 751.50 751.60 751.70 751.80 Administrative expenses Administrative expenses Administrative travel and accommodations Administrative travel-related meals Administrative education Overtime meals charged to firm Overtime parking and transportation charged to firm Employee lunchroom and coffee expenses Office entertainment expenses Gifts and flowers for employees 760.XX --761.00 761.10 761.20 761.30 761.40 Nonlawyer hiring expenses Nonlawyer hiring expenses Nonlawyer agency fees Nonlawyer employment advertising Relocation of new nonlawyer employees Nonlawyer hiring meals and entertainment 770.XX --771.00 771.10 771.20 --772.00 --773.00 --774.00 --775.00 --776.00 --777.00 --778.00 Communications expenses Telephone expense Local and recurring expenses Long distance charges Client reimbursement for telephone costs Telex, facsimile, and electronic mail costs Client reimbursement for telex and facsimile costs Postage expense Client reimbursement for postage expense Outside messenger services Client reimbursement for outside messenger services 780.XX --781.00 781.10 781.20 781.30 781.40 781.90 Miscellaneous office expenses Miscellaneous office expenses Plant care and rental Moving expenses for interoffice transfer of administrative staff Outside computer services Miscellaneous small equipment purchases Other offices expenses 790.XX --791.00 --792.00 Client reimbursement of multiple cost categories Reimbursement for reprographics Reimbursement for computer costs SAMPLE Practice Resource Institute Administrative Form Page 12 of 14 Professional and Other Expenses 800.XX --801.00 801.10 801.20 801.30 801.40 801.90 --802.00 802.10 802.20 802.90 --803.00 803.10 803.20 803.30 803.90 Professional activities Association expenses Bar association dues Professional association dues Association travel and accommodations Association meals and entertainment Other association expenses Firm meeting expenses Firm meeting and retreat travel and accommodations Firm meeting and retreat meals and entertainment Other firm meeting and retreat costs Continuing legal education expenses CLE tuition and fees CLE travel and accommodations CLE meals and entertainment Other CLE expenses 810.XX --811.00 811.10 811.20 811.30 811.40 811.50 811.60 811.90 Practice development Practice development Club dues and expenses Attendance/speaking at industry and civic meetings Advertising and listings in publications and directories Public relations Practice development meals and entertainment Firm publications Other practice development expenses (not chargeable to clients) 820.XX --821.00 --822.00 --823.00 --824.00 --825.00 825.10 825.20 825.30 825.90 --826.00 826.10 826.20 Professional recruiting and legal staff moving expenses Professional staff recruiting travel and accommodations Professional staff recruiting meals and entertainment Summer associate meals and entertainment Other summer associate program costs Other professional staff recruiting expenses Recruiting publications Recruiting agency fees and advertising Relocation of new lawyer hires Other recruiting Moving expenses for interoffice transfer of legal staff Moving expenses for partner interoffice transfers Moving expenses for associate interoffice transfers SAMPLE Practice Resource Institute Administrative Form Page 13 of 14 830.XX --831.00 --832.00 --833.00 --834.00 --838.00 --839.00 Library and other reference materials and services Book purchases Depreciation of capitalized books Periodical subscriptions Library supplies Outside data base research services Client reimbursement of outside data base research Other Operating Expenses 840.XX --841.00 --842.00 --849.00 849.10 849.90 Insurance Professional liability insurance Property insurance Other insurance Other liability insurance Bonds and other insurance 850.XX --851.00 851.10 851.20 851.30 851.90 Taxes Taxes Personal property taxes State and local business taxes and fees Unincorporated business taxes Other professional services 860.XX --861.00 861.10 861.20 861.30 861.40 861.50 861.90 Professional services Professional services Accounting, auditing, and tax services Management consulting services Marketing consulting services Outside legal services (for the firm) Outside pension plan administration services Other professional services 870.XX --871.00 871.10 871.20 871.30 --878.00 --879.00 Client expenses Costs recoverable from clients, written off Unbilled costs recoverable from clients, written off Billed costs recoverable from clients, written off Recovery of client costs previously written off Business meals and entertainment chargeable to clients Business meals and entertainment charged to clients (offset) SAMPLE Practice Resource Institute Administrative Form Page 14 of 14 Nonoperating Income and Expenses 880.XX --881.00 881.10 881.20 --882.00 882.10 882.90 --883.00 883.10 883.90 --884.00 --885.00 --888.00 --889.00 Nonoperating income and expenses Interest income Interest income on securities Other interest income Interest expense Interest expense on working capital loans Other interest expense Gains (losses) on sale of assets Gain (loss) on sale of securities Gain (loss) on sale of other assets Investment real estate property tax Charitable contributions Other nonoperating income Other nonoperating expenses 890.XX --*891.00 --*892.00 --*893.00 Income taxes Federal income taxes State income taxes Local income taxes 899.XX Profits distributable to former/inactive partners
